City of Pennsylvania

Riverview Home is a shelter of last resort for nearly 200 mentally and physically disabled people and allegedly violated federal minimum wage laws by paying residents who participated in a work program less than minimum wage for daily chores. Residents were required to work up to five days a week, four hours a day for $25 a month. The city of Philadelphia agreed to a $123,000 settlement in back pay. One of the residents has now filed a lawsuit arguing that the settlement took advantage of him and other residents. The suit alleges that Philadelphia city officials did not inform residents they were giving up their right to sue when they were asked to sign waivers accepting the settlement. The lawsuit argues that the city had a conflict of interest and that Riverview's motivational therapy work program was also in violation of Pennsylvania's personal care home law, which required residents to be paid the $5.15 per hour minimum wage to work around the facility.